Location Sciences Group Plc (SORT) AI Stock Analysis

Location Sciences Group Plc

(LSE:SORT)

Select Model

Rating:25Underperform

Price Target:GBX 21.50▲(138.89% Upside)

Action:reiterated

Date:12/03/25

Location Sciences Group Plc receives a low overall score of 25, reflecting severe operational and financial challenges that outweigh its revenue growth momentum. The primary concerns are: (1) deeply negative profitability across all margins despite strong top-line expansion, indicating an unsustainable business model; (2) shareholder value destruction with -237% ROE and high leverage (debt-to-equity above 3), creating solvency risks; (3) deteriorating free cash flow (-60% growth) and negative cash conversion, signaling funding pressures; and (4) bearish technical signals with the stock trading well below all major moving averages and showing oversold momentum (RSI 12.91). The company requires substantial restructuring and a demonstrated path to profitability before becoming suitable for most investors. Current technical weakness suggests further downside risk may materialize.

Positive Factors

Revenue GrowthStrong revenue growth indicates robust demand for SORT's location data services, enhancing its market position and potential for future expansion.

Negative Factors

High LeverageHigh leverage poses financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Location Sciences Group Plc (SORT) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 687.57K
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): -0.2
Beta (1Y): 0.87
Revenue Growth: -27.69%
EPS Growth: 34.61%
Country: UK
Employees: 51
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Location Sciences Group Plc Business Overview & Revenue Model

Company Description

Sorted Group Holdings Plc focuses on optimizing the delivery journey and assessing post-purchase performance for businesses. Through its "Delivery Experience" platform, the company furnishes retailers and brands with essential data and capabilities,...

How the Company Makes Money

Location Sciences Group Plc generates revenue primarily through its location data services, which include location verification and analytics solutions. The company's revenue model is based on subscription fees, where clients pay for access to its te...

Location Sciences Group Plc Financial Statement Overview

Summary

Location Sciences Group Plc demonstrates strong revenue growth of 75.7% YoY, but this is severely undermined by deeply negative profitability metrics. Net profit margin stands at -59.7%, EBIT margin at -72.6%, and the company is destroying shareholder value with a -237% return on equity. High leverage (debt-to-equity above 3) compounds the risk, while free cash flow has deteriorated by 60%, signaling unsustainable burn rates. The business is expanding without a clear path to profitability.

Income Statement

18Very Negative

Balance Sheet

14Very Negative

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.87M	5.64M	53.07K	110.86K	167.94K	318.57K
Gross Profit	2.01M	3.88M	38.70K	-177.84K	90.70K	212.99K
EBITDA	91.61K	-1.07M	-512.83K	-591.24K	-418.26K	115.03K
Net Income	-2.47M	-3.36M	-1.72M	-758.22K	-1.67M	-1.24M
Balance Sheet
Total Assets	5.77M	8.70M	10.84M	4.49M	5.36M	2.86M
Cash, Cash Equivalents and Short-Term Investments	1.11M	2.66M	955.11K	4.13M	4.38M	1.13M
Total Debt	4.63M	4.57M	7.28M	0	0	0
Total Liabilities	6.50M	7.29M	990.64K	157.86K	183.18K	211.61K
Stockholders Equity	-728.63K	1.42M	-573.52K	4.33M	5.18M	2.65M
Cash Flow
Free Cash Flow	-83.90K	-321.02K	-687.98K	-253.25K	-756.76K	-1.04M
Operating Cash Flow	-50.26K	582.93K	-687.98K	-261.62K	-415.32K	-565.29K
Investing Cash Flow	-340.61K	2.47M	34.01K	8,368	108.70K	-472.30K
Financing Cash Flow	-786.66K	-803.98K	-2.52M	0	3.56M	839.97K

Location Sciences Group Plc Technical Analysis

Technical Analysis SentimentNegative

Last Price9.00

Price Trends

50DMA9.00Neutral

100DMA9.00Neutral

200DMA14.46Negative

Market Momentum

MACD-0.00Negative

RSI0.16Positive

STOCH-0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SORT, the sentiment is Negative. The current price of 9.00 is equal to the 20-day moving average (MA) of 9.00, equal to the 50-day MA of 9.00, and below the 200-day MA of 14.46, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 0.16 is Positive, neither overbought nor oversold. The STOCH value of -0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SORT.

Location Sciences Group Plc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:SORT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:ELCO	74Outperform	GBP 194.94M	50.33	11.31%	0.52%	16.89%	2.68%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GB:TIDE	50Neutral	GBP 6.41M	23.10	4.92%	―	―	―
GB:PULS	43Neutral	GBP 20.00M	-2.63	-21.57%	―	4.57%	-3.85%
GB:AIQ	42Neutral	GBP 4.53M	-9.70	33.06%	―	-100.00%	-38.78%
GB:RDT	39Underperform	GBP 1.18M	-0.23	480.99%	―	-1.56%	55.81%
GB:SORT	25Underperform	GBP 687.57K	-0.19	-799.08%	―	-27.69%	34.61%

* Technology Sector Average

Performance Comparison

GB:SORT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:SORT	Location Sciences Group Plc	9.00	-26.00	-74.29%
GB:PULS	Access Intelligence	14.75	-20.25	-57.86%
GB:TIDE	Crimson Tide	97.50	32.50	50.00%
GB:ELCO	Eleco Plc	231.00	74.60	47.70%
GB:RDT	Rosslyn Data Technologies	1.00	-2.35	-70.15%
GB:AIQ	AIQ Limited	6.50	0.50	8.33%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Dec 03, 2025

Location Sciences Group Plc AI Stock Analysis